Will Sprint Hand the Baton to T-Mobile USA?

T-Mobile USA (NYSE: TMUS  ) had a successful debut on the New York Stock Exchange on Wednesday. 

Investors bought into the company that consists of the merged T-Mobile and smaller MetroPCS. Deutsche Telekom (NASDAQOTH: DTEGY  ) will retain a 74% stake in the combined company.

It's good timing. A pair of bidders are making a play for Sprint Nextel (NYSE: S  ) , and the market can always use a third public player to keep AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) honest.

T-Mobile USA is losing contract subscribers, and its 43 million combined subscribers is less than Sprint's 55 million. It's also naturally a lot smaller than market leaders AT&T and Verizon Wireless. However, having a company check in every three months is important, even if T-Mobile's financials will be as unimpressive as Sprint's reports have been lately. 

In this video, longtime Fool contributor Rick Munarriz explains why it's important to have a third publicly traded wireless carrier for investors to dissect.

The mobile revolution is still in its infancy, but with so many different companies it can be daunting to know how to profit in the space. Fortunately, The Motley Fool has released a free report on mobile named "The Next Trillion-Dollar Revolution" that tells you how. The report describes why this seismic shift will dwarf any other technology revolution seen before it and also names the company at the forefront of the trend. You can access this report today by clicking here -- it's free.


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  • Report this Comment On May 04, 2013, at 6:54 PM, Bang88 wrote:

    This is one collosal joke! I've use Sprint wireless data service in California: Worthless, definately not business grade, a mere toy for kids. The same is true for MetroPCS and T Mobile, in fact beginning the moment (coincidence) Metro texted me to announce their buddy-up with T Mobile, the Internet access and data service died on my phone and customer service has been unable to restore it. Invest all you want in this garbage.

  • Report this Comment On May 04, 2013, at 6:59 PM, Bang88 wrote:

    Pss poor service leaves no option but to go with a mega-provider-near-monopoly, where, after all the service is no better! Joe consumer is younger and younger these days and has been trained like a monkey to accept less and less for what he already paid for.... "You need the upgrade".

    Meanwhile these fat cat blobs, the money men play poker with investors and customers' money while purveying junk products and service to the consumer.

    pfffft.

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